The city will scrap a controversial proposal to use a public-private partnership — a so-called P3 — to build and run a new recreation centre in southwest Edmonton, city hall sources say.

But there is still hope that the construction of the project, which is to include two pools, four ice sheets and three gyms, will still start on July 1. In December, council decided with a consortium of companies to proceed with a P3 to build a rec centre in the Terwillegar area.

Under that agreement, the private consortium would be in charge of building the centre and operating it for 35 years, leasing back the facilities to the city. P3s are supposed to save money and protect against labour shortages.

But the idea proved to be contentious because the negotiations were done in private, the quality of service that would be provided was questioned and it would likely employ non-union, non-city staff...